Click here to close now.

Welcome!

Cloud Expo Authors: Jason Bloomberg, Yeshim Deniz, AppDynamics Blog, Liz McMillan, Pat Romanski

Related Topics: Cloud Expo, Java, Microservices Journal, Virtualization, AJAX & REA, Web 2.0

Cloud Expo: Article

Avoiding the Hidden Costs That Derail Cloud Projects

The Challenge: Making Your Private Cloud Fit Your IT Infrastructure Puzzle

Most companies that have embarked on a private cloud journey find themselves in one of two unfortunate positions: they've already spent much more than they had planned or they're struggling with how to make sure costs don't get out of hand. These are typically companies with sophisticated IT organizations - organizations that ask tough questions and put detailed plans in place. For example, an international bank spent millions of dollars and six months of professional services time before scrapping their existing cloud project and restarting it with a completely new approach and toolset.

The Challenge: Making Your Private Cloud Fit Your IT Infrastructure Puzzle
Cloud automation vendors make deploying a private cloud sound easy. If you take their basic out-of-the-box capability, the good ones will probably take you anywhere from a few hours to a few days to get a simple self-service private cloud working. While that may make a nice proof-of-concept demo, will that actually meet the needs of how you manage your infrastructure or will you need to replace prior technology and best practice investments to make your cloud work?

Cloud management is not a standalone entity. For your cloud to be successful, it needs to integrate and work with your existing management infrastructure and best practices. As you evaluate cloud management platforms, you need to assess how each tool works with your current and future management ecosystem. Your cloud management choice will not only impact prior investments, it can also limit your future choices. In order to avoid some of the hidden private cloud costs, evaluate how cloud management options will fit with your existing IT ecosystem.

  • Deployment Technologies
    Does your cloud management plaform work with the current technologies used to deploy your infrastructure? This includes both the private resources in your data centers and public cloud resources. Does it support the operating system, server virtualization tools, and desktop technologies being used today as well as the ones you may want to use in the future?
  • Management Infrastructure
    Typically, the delivery of a private cloud service requires a work order ticket to be generated, an internal database accessed, and that specific tools be used to deploy software, monitor the environment and take corrective action. How easily does your cloud management platform work with your current management tools and processess? Will you need to replace these tools or pay for extensive customization to make your cloud management solution work?
  • Best Practices
    As part of continuous process improvement, companies should always be looking to streamline and improve their processess. Deploying a private cloud is a large paradigm shift and some process changes will likely be needed to facilitate end-to-end automation. However, your cloud management software should not force changes on you that don't make sense within the guidelines established for your company. Remember that substantial changes required by the vendor are likely to be costly in terms of time and effort, if not also technology.
  • Custom Self-Service Portal
    All cloud management products provide some level of self-service capabilities. An out-of-the-box self-service portal simplifies initial deployment. However, what if your company already has a self-service portal or existing work order ticketing system? The last thing you will need is yet another portal. How easily can your existing portal be integrated with your cloud management services and will you need to spend time and money reproducing all the security in the custom portal?

Cloud Management Extensibility
Extensibility is also a critical factor in private cloud costs. Wikipedia defines extensibility as: "In systems architecture, extensibility means the system is designed to include hooks and mechanisms for expanding and enhancing the capabilities without having to make major changes to the system infrastructure." Often this means making modifications at runtime without requiring changes to the original source code.

Most cloud automation products will only automate a portion of your provisioning, ongoing management, or decommissioning processes. Therefore, an extensible architecture, combined with multi-vendor support, are fundamental components of cloud management platforms as they're needed to facilitate integration with the current IT infrastructure and management ecosystem.

With regard to extensibility, cloud management software products typically fall into one of the following two categories:

  • Prescriptive Tools
    Many cloud management solutions were built for a specific problem, like lab management, and have prescribed processes, limited interoperability, and lack the extensibility features needed to adapt to more broad-scale deployment requirements.

Any tool that requires drastic changes to existing management tools, infrastructure components, or operational processes will result in additional capital costs required to replace existing technology as well as additional investment in people who can use this new technology and processes.

The other challenge is that your company will likely be unable to achieve the savings you have envisioned because the automation solution will not meet the needs of the various business units. These business groups will either stay with their current manual process, reducing the percentage of your infrastructure that can be moved to an on-demand cloud, or they will implement a different cloud solution that does not provide your company with the operational scalability and savings you could have had with a single integrated solution.

  • Automation Toolkits
    Some vendors provide very basic cloud management capabilities and augment their cloud management offering by providing separate run book toolkits or "orchestration" products. This option allows companies to completely customize their cloud solution. However, there are multiple hidden costs associated with this implementation choice:

Initial services costs outweigh the software costs
These solutions tend to require lengthy and expensive custom services projects where services typically cost three times as much as the software.

Customized solutions are not easily extended to other business
In addition to the higher upfront costs, cloud automation solutions built with an automation toolkit tend to be built specifically for the needs of a single business. When companies try and expand the use of the highly customized solutions, they either have further customization costs or suffer from limited adoption across the enterprise.

Customized solutions make upgrades to newer release difficult
Many customizations strand the implementation at a specific release, making upgrades to newer versions difficult and costly.

Mitigating Private Cloud's Hidden Costs
Hopefully you now have a better understanding of some of the hidden cloud deployment costs and how your automation choice can not only affect costs but also impact your actual savings. It's important that you can adapt and expand automation with tools targeted at both IT operations as well as developers. In order to enable the quickest time-to-cloud value, companies should consider the following capabilities when evaluating cloud management platform software:

  • Comprehensive out-of-the-box functionality
    First and foremost, you will want a cloud management solution with a comprehensive set of out-of-the-box cloud management features. Many vendors only focus on initial provisioning capabilities. Make sure your cloud management platform automates the complete life cycle including ongoing management, resource reclamation, and decommissioning including archiving. The more features available out-of-the-box, the less need for costly custom services to extend the product's core functionality.
  • Broad multi-vendor support
    When evaluating cloud management options, make sure that the tool you choose can orchestrate end-to-end delivery across all the technology and management components that make up your implementation. Most vendors only support components from their own offerings. Unless you're a single-vendor shop, that means you may need to discard your prior investments and be locked into that vendor's technology in the future. Multi-vendor support includes technologies used in your private cloud as well as public cloud resources.
  • Policy enabled extensibility
    How extensible is your cloud management platform by just changing configuration parameters? Can you select different provisioning workflows, collect custom data, define resource limits and service levels, or create custom approvals or reclamation workflows? These are just a few of the many customizations you should be able to make via policies. The more you can customize your cloud deployment via policies, the quicker and more cost-effectively you will be able to deploy a private cloud infrastructure that meets company's specific needs.
  • Business-aware governance
    Being able to modify the behavior of your cloud via policies is important, but just as important is the granularity of the policies that can be configured. They must be granular enough to allow different business groups to have different services that are built and constructed using different processes, resources and service levels. For example, the way you provision and manage IT resources can be quite different for dev/test vs. production vs. desktops. Business-aware governance and control is fundamental to meeting the unique needs of each business and driving broader cross-group adoption of cloud services.
  • Modify out-of-the-box automation
    Can you easily add tasks or call scripts at various states in the machine's life cycle? Is there a visual workflow editing tool and a library of predefined activities that simplify the customization process? For example: How easily can you add a self-service command to perform a specific function, access/retrieve information from a custom DB as part of the provisioning process, or execute a script to customize a machine configuration? Are you modifying the workflows that ship with the product or is this a separate run book automation or "orchestration" tool that you need to bolt onto the cloud management tool?
  • Automate additional tasks
    Can the cloud automation platform be used to automate additional tasks that go well beyond simple modifications to out-of-the-box processes? For example, one company extended the process used to provision new desktops to also automate the process of onboarding new employees. If you need this level of extensibility, one factor that should be considered is the availability of developers with this skill set. Automation tools based on de facto standards like Visual Studio and .NET will be much easier to find developers for than a vendor-specific automation tool.

Implementing and managing a private or hybrid cloud doesn't have to be so expensive. Make sure you're armed with the knowledge needed to fully evaluate your cloud vendor's offerings for potential hidden costs. Otherwise your business may find itself putting cloud projects on hold or having to justify a much-increased budget.

More Stories By Rich Bourdeau

Rich Bourdeau is VP of Marketing at DynamicOps. He has over 20 years of experience in developing, managing and marketing IT infrastructure management solutions for enterprises. Rich has spent the last four years at DynamicOps helping companies deploy and manage their private cloud infrastructures. He is a regular contributor to the DynamicOps blog and has authored papers on Must Have Cloud Management Capabilities as well as Building the Business Case for Private Cloud. Rich can be reached at [email protected] if you want to learn more about cloud management.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of ...
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
of cloud, colocation, managed services and disaster recovery solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. TierPoint, LLC, is a leading national provider of information technology and data center services, including cloud, colocation, disaster recovery and managed IT services, with corporate headquarters in St. Louis, MO. TierPoint was formed through the strategic combination of some of t...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will mee...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provide...
SYS-CON Events announced today that Column Technologies, a global technology solutions company, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1998, Column Technologies is a leader in application performance and infrastructure management for commercial and federal markets. The company is headquartered in the United States, with a diverse and talented team of more than 350 employees around th...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
Public Cloud IaaS started it's life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in ado...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) ap...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
Database apps on mobile devices shouldn't stop working when there's limited or no network connectivity. In his session at 16th Cloud Expo, Bradley Holt, a Developer Advocate for IBM Cloudant, will discuss how to bring data stored in a cloud database to the edge of the network (and back again), whenever an Internet connection is available. He will demonstrate techniques for replicating cloud databases with mobile devices in order to build offline-enabled mobile apps that can provide a better,...
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
ProfitBricks has launched its new DevOps Central and REST API, along with support for three multi-cloud libraries and a Python SDK. This, combined with its already existing SOAP API and its new RESTful API, moves ProfitBricks into a position to better serve the DevOps community and provide the ability to automate cloud infrastructure in a multi-cloud world. Following this momentum, ProfitBricks has also introduced several libraries that enable developers to use their favorite language to code ...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...